Burger King sets share sale price band at Rs 59-60 a piece

Quick service restaurant chain Burger King India Ltd Friday set a worth band of Rs 59-60 per share for its ₹810 crore preliminary public providing (IPO) opening on December 2.

The firm will promote new shares price Rs 450 crore to the general public, whereas promoter entity QSR Asia Pte Ltd, owned by personal fairness agency Everstone Group and its restricted companions, will promote as much as 60 million shares price Rs 360 crore on the higher finish of the worth band. Post the IPO, the promoter entity will maintain 52.9% within the firm.

Burger King India stated in its crimson herring prospectus that it’s going to use the funds to repay present debt and finance capital expenditure for brand spanking new company-owned shops. The firm has raised pre-IPO funding of Rs 92 crore from public markets investor Amansa Investments Ltd at Rs 58.5 per share. Burger King India stated it holds a grasp franchisee association, which supplies it with the flexibleness to tailor its menu to Indian tastes and preferences, in addition to its promotions and pricing.

Burger King’s IPO comes at a time of resurgence in Covid-19 instances in sure elements of the nation, giving rise to issues that native authorities may impose new restrictions. Most of its shops throughout the nation at the moment are operational. Shifting demand from the unorganised sector to the organised sector and easing actual property costs will open up alternatives for the corporate, which is well-financed and has an excellent staff in place, chief govt officer Rajeev Varman stated. The firm expects 70% of its progress to return from the 50-plus cities the place it’s already current, Varman stated, “One, to penetrate enough so that we are convenient for the customers there, but to also bring some synergies and some economies of scale on distribution expenses, operational overheads and so forth.”